The regulator raised the refinancing rate to 8%

For the first time in a long time the central bank raised the refinancing rate and the interest rates on individual transactions by 0,25 percentage points. It is planned that the changes will come into force on 28 February. It is worth noting that this decision was not unexpected. Prior to that, many times discussed how to take the necessary measures to reduce inflation. Last year, the Central Bank chairman Sergei Ignatiev said that "inflation is beginning to worry us." However, he warned that the Bank of Russia is likely to raise the refinancing rate, if not the end of 2010, in the first quarter of 2011. The need for such measures announced recently, and Finance Minister Alexei Kudrin, who noted that the summer drought and crop failures have significantly increased food prices. Now the government must seek to reduce inflation from 8.8% to 7%. Increased refinancing market participants predicted in late 2010. So the head of Treasury Bank "Express-credit" Renat Kamaletdinov then said that amid accelerating inflation, the Central Bank refinancing rate is likely to actually be increased, with 25 pp. "The greater the increase will be difficult to go" - he stressed. Recall that since April 2009, the Bank of Russia reduced its refinancing rate 14 times. The last reduction was made June 1, 2010, and later CB 8 times leaving rates at 7.75% per annum.